Correction: An earlier version of this article incorrectly stated the timing for an extension of Brexit after the original March 29 deadline, if the U.K. Parliament supports Prime Minister Theresa Mayâ€™s plan to exit from the European Union. If Parliament votes in favor of Mayâ€™s Brexit, the deadline will be extended to May 22. The error has been corrected.
Many currencies, including the majors, were retracing last weekâ€™s movements on Monday, leading to little action in the U.S. dollar and euro, as well as a rebound from losses in emerging markets.
Friday trading was dominated by the first inversion since 2007 of the 3-month Treasury yield
Â and 10-year yield
which sparked fears about an impending recession among investors. However, it didnâ€™t have much sway on the U.S. dollar, which was kept in the green thanks to a selloff in its biggest rival, the euro, following disappointing economic data.
On Monday, the ICE U.S. Dollar Index
Â was down 0.1% at 96.530.
Similarly, the euro
which got punished after weaker than expected manufacturing data for the eurozone and its biggest component Germany, was slightly stronger at $1.1318, versus $1.1305.
On Monday, Germanyâ€™s Ifo data for March showed stronger than anticipated assessments of business climate, current conditions and expectations.
The Japanese yen
Â weakened against the dollar, after shooting to a roughly six-week high in response to Fridayâ€™s action in bond yields. One dollar last bought Â¥110.11, compared with Â¥109.92 late Friday in New York.
Emerging-market currencies also recovered some of last weekâ€™s losses in Monday trading. The Turkish lira
Â for example, which on Friday dropped more than 5% against the greenback, bounced sharply higher on Monday. One dollar last bought 5.5614 lira, down 3.5%.
In the U.K., the Brexit drama continues and the situation is more fluid than perhaps ever before. According to what the European Union has set forth, the British Parliament could still vote in favor of Prime Minister Theresa Mayâ€™s Brexit deal and thereby secure an extension of the March 29 deadline to May 22, ahead of the European election. According to local reports early Monday, May intends to put a version of her withdrawal deal to a vote in Parliament on Tuesday.
The premier has since acknowledged that there isnâ€™t enough support for the deal yet during a speech in Parliament, but said she still hoped to bring the her deal to a vote in the coming days.
The British pound
which had flipped into positive territory on the news of third vote, slipped back into the red as May was addressing the House of Commons. One pound last fetched $1.3187, versus $1.3208.
Brexit Brief: May faces pressure to resign as deal hopes fade
â€œOne of the few definite things in the very fluid situation is that the U.K. will not be leaving the EU at the end of the week as initially intended,â€ wrote Marc Chandler, chief market strategist at Bannockburn Global Forex.
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